Locking in some property

[Kevin Richard]

This is probably a stupid question but I still need it answered. ;)

I am going to embark on a seasonal business and I have a GREAT piece of property picked out and it is for sale. It's actually priced really well.

That is actually the problem. The season just started so I won't be ready to actually start up till about a year from now. I can see us needing 6 months to break ground and get ready. But a year is a long time. I doubt the property will stick around that long and I really don't want to chance it because at that point I'm looking at 80% more expensive for probably 50% of the land!

What can I do... how do new business construction loans go. Can I borrow half a million (I estimate 250k to get started)... then use some of the rest to kind of pay for the loan while we get setup and float through the rest of the year.

I suspect that we will pay back the loan in two years, maybe a LITTLE more. (with lots of sacrifice and hard work).

Lots of great ideas to set in motion... just about 6 months too early to actually get into "action".

What options do I have?

Thanks in advance,
Kevin

[Jon Klaus]

I think I would approach the new business and the real estate separately. Each should make sense on their own and together give you even more.

Because of the timing, why don't you try to tie up the property with a 6 month option to buy. Perhaps pay up to 5% of the current value for the option. Try to negotiate that the option will apply to the purchase when/if you buy it.